The Justice Department has dropped its criminal investigation into Federal Reserve Chair Jerome Powell. U.S. Attorney Jeanine Pirro announced the decision on April 24, 2026. The probe, initiated in November 2025, centered on allegations Powell made false statements to Congress about the Fed's headquarters renovation.
This move removes a major obstacle for Kevin Warsh, President Donald Trump's nominee to replace Powell. The closure signals a de-escalation in tensions between the executive branch and the central bank. Prediction markets now place a 98.2% probability on Powell leaving by May 31, 2026, up from 81% a week ago.